Corruption and Trade Tariffs, Or a Case for Uniform Tariffs

Corruption and Trade Tariffs, Or a Case for Uniform Tariffs PDF Author: Roberta Gatti
Publisher: World Bank Publications
ISBN:
Category :
Languages : en
Pages : 22

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Book Description
A highly diversified trade tariff menu may fuel bribe-taking behavior. Setting trade tariff rates at a uniform level limits public officials' ability to extract bribes from importers.

Corruption and Trade Tariffs, Or a Case for Uniform Tariffs

Corruption and Trade Tariffs, Or a Case for Uniform Tariffs PDF Author: Roberta Gatti
Publisher: World Bank Publications
ISBN:
Category :
Languages : en
Pages : 22

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Book Description
A highly diversified trade tariff menu may fuel bribe-taking behavior. Setting trade tariff rates at a uniform level limits public officials' ability to extract bribes from importers.

Corruption and Trade Tariffs, or a Case for Uniform Tariffs

Corruption and Trade Tariffs, or a Case for Uniform Tariffs PDF Author: Roberta Gatti
Publisher:
ISBN:
Category :
Languages : en
Pages : 16

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Book Description
A highly diversified trade tariff menu may fuel bribe-taking behavior. Setting trade tariff rates at a uniform level limits public officials' ability to extract bribes from importers.By explicitly accounting for the interaction between importers and corrupt customs officials, Gatti argues that setting trade tariff rates at a uniform level limits public officials' ability to extract bribes from importers.If the government's main objective is to raise revenues at the minimum cost to welfare, optimally-set tariff rates will be inversely proportional to the elasticity of demand for imports. So they will generally differ across goods.Such a menu of tariff rates endows customs officials with the opportunity to extract rent from importers. If officials have enough discretionary power, they might threaten to misclassify goods into more heavily taxed categories unless importers pay them a bribe. Because of the bribe, the effective tariff rate for the importing firm increases, so demand for the good decreases.The resulting drop in import demand implies an efficiency loss as well as lower government revenues, compared with the optimal taxation benchmark without corruption.A similar argument applies when customs officials offer to classify goods into low-tariff categories in exchange for a bribe.Setting trade tariffs at a uniform level eliminates officials' opportunities to extract rents. Thus, when corruption is pervasive, a uniform tariff can deliver more government revenues and welfare than the optimally set (Ramsey) tariff benchmark.The empirical evidence confirms that these considerations are relevant to policymaking, since a robust association between the standard deviation of trade tariffs - a measure of the diversification of tariff menus - and corruption emerges across countries.This paper - a product of Macroeconomics and Growth, Development Research Group - is part of a larger effort in the group to study corruption. Please contact Roberta Gatti, Internet address [email protected].

Political-Economy Arguments for a Uniform Tariff

Political-Economy Arguments for a Uniform Tariff PDF Author: Arvind Panagariya
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
Uniform tariffs have become increasingly popular in recent years, yet their economic rationale is not strong. We identify and evaluate three sets of reasons as to why governments may prefer tariff uniformity as a means of alleviating political motives for excessive protection. First, a free-rider effect may be conducive to less lobbying under a uniform tariff regime than under a regime in which tariffs are allowed to differ. Second, an input-price effect may dampen the enthusiasm of final-goods producers for import protection. Third, a precommitment effect may increase the cost to a future government of protecting favored sectors. None of these arguments provides an unambiguous, airtight case for tariff uniformity. The decision on uniformity has to be made on a case-by-case basis.

On the Design of Tariff Policy

On the Design of Tariff Policy PDF Author: David G. Tarr
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
This chapter examines the arguments for and against a uniform tariff structure. Arguments against uniformity are: terms of trade; 'strategic, ' infant or restructuring industry considerations, revenue or balance of payments purposes, and tariffs as a negotiating tool at the WTO. Arguments in favor of uniformity are: political economy considerations; administrative convenience; and reduction of smuggling and corruption in customs. The author maintain that tariff uniformity is the best choice in practice. A uniform tariff conveys a number of advantages, the most important of which is that if the tariff is uniform, the gains to industry lobbying are much smaller (and may be negative), creating a kind of free-rider problem for the lobbying industry and dramatically reduces the incentive to lobby for protection. Then: (1) the level of protection is likely to be lower (the recent experience of Chile is a dramatic case in point); (2) there is a direct saving of resources from the reduced lobbying; (3) the reduction to the gains from lobbying for protection provides a vastly improved signal to valuable entrepreneurial talent which will thus be encouraged to create better and cheaper products; and (4) the reduction in resources devoted to lobbying will result in less corruption in government, which may have positive spillover effects into other dimensions of government activity.

The World Bank Research Program 2004

The World Bank Research Program 2004 PDF Author: World Bank
Publisher: World Bank Publications
ISBN: 9780821364574
Category : Business
Languages : en
Pages : 204

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Book Description
The World Bank's research is intended to address critical issues and problems facing member governments in developing and transition economies. How can the governments of the poorest countries generate enough revenue to provide the education and health services essential to reducing poverty and promoting growth and development? How can poor countries attract investors to build the infrastructure their economies need? How can they develop systems to bring clean water to the 2 billion people without it today? How can they train teachers and bring to class the 115 million children who have not yet received any education? And how can rich countries be persuaded to lower market barriers, helping to reverse the decline in export prices for poor countries that has left them earning less from trade today than in the 1970s? These are the types of questions that are addressed in this edition of 'The World Bank Research Program: Abstracts from Current Studies'. This volume reports on research projects initiated, under way, or completed from July 2003 through June 2004. It covers 151 research projects on several broad development related issues, including agriculture, health, education, environment, infrastructure, investment climate, and more. The abstract for each project describes the questions addressed, the analytic methods used, the findings to date, and policy implications.

International Handbook on the Economics of Corruption

International Handbook on the Economics of Corruption PDF Author: Susan Rose-Ackerman
Publisher: Edward Elgar Publishing
ISBN: 1847203108
Category : Political Science
Languages : en
Pages : 655

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Book Description
This collection of articles offers a comprehensive assessment of the subtle but nevertheless pervasive economic infrastructure of corruption. It provides suitable core or adjunct reading for law school, graduate, and undergraduate courses on international economics, international relations and international law. American Society of International Law This exhaustive collection, edited by Rose-Ackerman, cannot be called anything but excellent. . . . Overall, a wonderful addition to the literature. Highly recommended. C.J. Talele, Choice Susan Rose-Ackerman is a world-class economist and an authority on the economics of corruption. This is a fine reference volume that every economist interested in this important subject will want to have as a ready reference. Jagdish Bhagwati, Columbia University, US Economic research on corruption aims both to isolate the economic effects of quid pro quo deals between agents and third parties, and to suggest how legal and institutional reforms might curb harms and enhance benefits. In this comprehensive Handbook, top scholars in the field provide specially commissioned essays, both theoretical and empirical, exploring both types of research. The Handbook begins with an introductory essay by the editor, followed by two chapters written by leading exponents of cross-country research. However, the focus of the Handbook is on research at the micro level, where policy can be made and evaluated. These microeconomic studies fall into several overlapping categories. The first group includes studies that link corrupt incentives to institutional structures, particularly the organization of the state. The second draws implications from surveys of households or businesses and from controlled experiments. The third concentrates on particular sectors such as education, tax administration, public works, customs services, and pharmaceuticals. Finally, two chapters assess corruption in the transition away from socialism in Europe and Asia.

Importing Into the United States

Importing Into the United States PDF Author: U. S. Customs and Border Protection
Publisher:
ISBN: 9781304100061
Category : Education
Languages : en
Pages : 0

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Book Description
Explains process of importing goods into the U.S., including informed compliance, invoices, duty assessments, classification and value, marking requirements, etc.

Greed, Corruption, and the Modern State

Greed, Corruption, and the Modern State PDF Author: Susan Rose-Ackerman
Publisher: Edward Elgar Publishing
ISBN: 1784714704
Category : Law
Languages : en
Pages : 383

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Book Description
What makes the control of corruption so difficult and contested? Drawing on the insights of political science, economics and law, the expert contributors to this book offer diverse perspectives. One group of chapters explores the nature of corruption in democracies and autocracies, and “reforms” that are mere facades. Other contributions examine corruption in infrastructure, tax collection, cross-border trade, and military procurement. Case studies from various regions – such as China, Peru, South Africa and New York City – anchor the analysis with real-world situations. The book pays particular attention to corruption involving international business and the domestic regulation of foreign bribery.

How Does Bribery Affect Public Service Delivery?

How Does Bribery Affect Public Service Delivery? PDF Author: Francesca Recanatini
Publisher: World Bank Publications
ISBN:
Category :
Languages : en
Pages : 42

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Book Description


The New Institutional Economics of Corruption

The New Institutional Economics of Corruption PDF Author: Johann Graf Lambsdorff
Publisher: Routledge
ISBN: 1134316712
Category : Business & Economics
Languages : en
Pages : 356

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Book Description
This book constitutes a thorough analysis of the phenomenon of corruption, as seen from the perspective of New Institutional Economics - one of the most influential new schools of thought in the social sciences of the past decade.